China's export of semiconductors tops 1 trillion yuan in first 11 months despite US curbs

Chips are displayed at the exhibition area of central China's Hubei Province of the second China International Supply Chain Expo in Beijing, China, Nov 27, 2024. (Photo/Xinhua)

China's export of semiconductors grew by 20.3 percent in the first 11 months of 2024, thanks to the country's strenuous efforts to climb up the technological ladder, despite the mounting suppression by the US to slow down China's tech rise.

Semiconductors export reached 1.03 trillion yuan ($142.17 billion) during the first 11 months of 2024, marking a 20.3 percent year-on-year increase, data from the General Administration of Customs showed on Tuesday.

The figure surpasses automobile and mobile phone exports, and matches apparel exports, which also posted a value of 1.03 trillion yuan.

China's semiconductor industry has displayed a remarkable surge in homegrown innovation and output in recent years, despite facing rising sanctions and export restrictions imposed by the US, according to a Chinese analyst.

Ma Jihua, a veteran telecom industry observer, told the Global Times on Tuesday that China's semiconductor sector has shown remarkable vitality and resilience, amidst cascading containment and suppression led by Washington.

"The homegrown tech advance is marked by the increase of types of semiconductors now manufactured by domestic companies, non-stop breakthroughs across the manufacturing process from upstream to downstream, and the new height made in self-reliance," Ma said.

"Many of the semiconductor exports are driven by the robust growth of Chinese-made smart and internet-connected vehicles, smart home appliances, and digital gadgets around the world - as a lot of these were manufactured overseas by Chinese plants," he added, noting that this trend is just unstoppable due to the economics of scale and comparative cost advantage enjoyed by Chinese chip manufacturers.

In 2023, global sales of automotive semiconductors grew by 23.7 percent year-over-year, hitting $42.2 billion, according to US-based industry body the Semiconductor Industry Association.

China's semiconductor output now accounts for 7 percent of the global total, marked by steadily rising exports and a growing position in the global semiconductor supply chain, Ma said.

"The US push for decoupling and severing the supply chain from China looks increasingly precarious, as the importance of the Chinese semiconductor industry continues to grow," Ma said.

The robust growth of high-tech products shows that China's industrial transformation and upgrading efforts are starting to yield results despite the US' technology containment of China, and China will continue to build up its technology competitiveness and enhance self-sufficiency in high-tech products, Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times.

Chinese chip exports are expected to continue to register fast growth in the coming years, Xiang predicted.